Washington: US President Donald Trump on Friday announced what he described as the “biggest oil deal in world history”, claiming that his administration had reached an agreement with Venezuela that would give the United States majority control over 65 billion barrels of the South American country’s proven oil reserves, AFP reported.
The arrangement is expected to attract nearly $100 billion in private investment to Venezuela, US Secretary of State Marco Rubio said, although neither the White House nor Caracas immediately released detailed terms of the agreement.
Venezuela possesses the largest proven petroleum reserves in the world. Its government has faced sustained pressure from the Trump administration since US forces removed and captured long-time ruler Nicolas Maduro in January.
Following Maduro’s ouster, his then vice-president, Delcy Rodriguez, was permitted to remain in office as interim leader, provided she continued to comply with Washington’s demands.
Trump Seeks Venezuelan Oil
Trump has repeatedly expressed his interest in gaining access to Venezuela’s vast oil resources. In a post on his Truth Social platform announcing the agreement, he said the deal would more than double the United States’ oil reserves.
There was no immediate response from the Venezuelan government confirming the deal.
Trump said Rubio and US Defence Secretary Pete Hegseth had negotiated the arrangement with Rodriguez as part of an agreement involving private companies.
“This Transaction will greatly strengthen the already growing relationship between Venezuela and the United States!” Trump wrote.
Rubio said the agreement showed that the President’s foreign policy was delivering gains for the United States.
“President Trump’s bold foreign policy is driving America First wins: securing stable reserves and low-cost oil in our Hemisphere and lowering gas prices here at home,” the Secretary of State wrote on X.
He said the agreement would also provide substantial economic support to Venezuela.
“For the Venezuelan people, this deal will bring nearly $100 billion in private investment, support thousands of high-paying jobs, and drive the reconstruction of Venezuela’s economy,” Rubio said, without offering additional information about the proposed investment or the ownership structure.
Details Remain Unclear
The announcement came a day after the news website Axios reported that Washington and Caracas were negotiating access to a dozen oil fields believed to contain 90 billion barrels of proven reserves.
The figure represents roughly one-third of Venezuela’s total proven reserves, estimated at about 300 billion barrels. Axios cited two US officials familiar with the discussions.
According to the report, the United States would receive an ownership stake in the fields, while private companies — including US-based firms — would undertake the development work. The arrangement would also provide Venezuela with a larger share of the revenue generated from oil production, Axios said.
The report added that such a deal could more than double US oil reserves at a time when the country’s Strategic Petroleum Reserve is at its lowest level in about four decades.
Trump also claimed that the agreement would eventually reduce petrol prices for US consumers. The issue is politically significant for the President as his approval ratings decline ahead of the November midterm elections.
The administration’s decision to launch a war with Iran has disrupted global oil supplies, adding to pressure over energy prices and raising concerns about the impact on American motorists.
The Trump administration has been encouraging US energy companies to invest in Venezuela. However, several companies have remained cautious because of the country’s deteriorating oil infrastructure and Caracas’ previous seizure of assets belonging to foreign investors.
Chevron, the only US oil company that continued operating in Venezuela when Maduro was removed, said in July that it had increased its daily crude production in the country to 280,000 barrels.
The company has said it intends to raise output by another 50 per cent by the end of 2028.
